USD/JPY falls below SMAs

USD/JPY spent Thursday’s morning in between the bounds of the weekly PP and the 100-hour SMA.

However, as risk-averse investors started buying the Yen mid-session, the US Dollar fell 100 pips within a couple of hours, thus dashing through the strong support of the 100-, 55– and 200-hour SMAs. This fall was stopped solely by the bottom boundary of a two-week channel near the 108.60 mark.

Technical indicators suggest that this period of decline could continue in this session, as well, especially if the current stock volatility persists. In addition, no significant events that could push the rate above all three SMAs at 109.30 are scheduled for today.

In case of strong bearish sentiment, the ultimate low should be the weekly S2 at 107.60, while a more possible target is the bottom channel line near 108.60.



Add a comment